Press Information Bureau
Government of India
Ministry of Finance

25-November-2011 18:50 IST

There are 31 State Cooperative Banks, 370 District Central Cooperative Banks (DCCBs), 20 State Co-operative Agriculture and Rural Development Banks (SCARDBs) and 697 Primary   Co-operative Agriculture and Rural Development Banks (PCARDBs) in the country.

As  per  the  information  available  with  National  Bank  for  Agriculture  and  Rural  Development  (NABARD)  the  amount of loss/profit made by Cooperative  Banks in the country during  2008-09  and 2009-10 is as under :

(Rs. in crore)

(number of banks shown in bracket) 

Data for the year 2009-10 is provisional $ Manipur SCARDB is defunct

During the inspections of the banks, various irregularities, such as non-maintenance of minimum capital requirement, maintenance of Cash Reserve Ratio, Statutory Liquidity Ratio,  non-compliance with various provisions of Banking Regulation Act, 1949 (As Applicable to Cooperative Societies), irregularities in sanction of loans and advances, violation of investment guidelines of RBI, etc., are being observed. The deficiencies observed in the functioning of the banks during the inspection by NABARD are being brought to the notice of the banks and the Registrar of Cooperative Societies of the State concerned with an advice to take rectification measures.  These violations are being monitored/rectified through compliance mechanism. In case of serious violations, RBI has taken action by way of imposing penalty for violation under Section 46 and 47 of Banking Regulation Act, 1949.

This information was given by the Minister of State for Finance, Shri   Namo Narain Meena in written reply to an Unstarred Question in Lok  Sabha today.

DSM/Hb

Banking regulation compliance monitored; non-compliance triggers rectification notices and penalties under regulatory oversight and statutory sanctions apply. Inspections of cooperative banks reveal statutory and operational deficiencies-non-maintenance of minimum capital, shortfalls in Cash Reserve Ratio and Statutory Liquidity Ratio, breaches of the Banking Regulation Act (as applicable to cooperative societies), irregular loan sanctions, and investment guideline violations. Deficiencies are communicated to banks and the state Registrar of Cooperative Societies for rectification and are monitored through a compliance mechanism; serious violations attract penalties under the statutory Banking Regulation penalty provisions.